I’ve compiled the market statistics for Wake County in October 2020 and I’ve added two new data points: Interest rates and an update on iBuying activity!
Keep in mind that the data in the first table is for Wake County only! It does not include Durham or Chapel Hill (Orange County). Also, these numbers indicate data from the City of Raleigh as well as the surrounding cities that make up Wake County.
|October||Year to Date|
|October 2019||October 2020||+/-(%)||2019||2020||+/-(%)|
|Median Sales Price||$319,945||$345,000||+7.8%||$315,000||$335,000||+6.3%|
|Average Sales Price||$363,264||$394,656||+8.6%||$357,807||$380,333||+6.3%|
|Percent of Original List Price Received||97.8%||99.7%||+1.9%||98.3%||99%||+0.7%|
|Percent of List Price Received||99.0%||100.2%||+1.2%||99.3%||99.7%||+0.4%|
|Days on Market Until Sales||29||16||-44.8%||27||24||-11.1%|
|Inventory of Homes for Sale||4,348||2,270||-47.8%|
|Months Supply of Inventory||2.5||1.2||-52.0%|
|Interest Rates||3.06% (30yr Fix)|
|Interest Rates||September 2020||October 2020|
|30 Year Fixed Rate Mort.||3.04%||3.06%|
New Listings in Wake County NC October 2020
As you can see above there was a 5.1% increase in houses listed for sale when compared with this time last year. This is an interesting number to see relative to last year, given the current pandemic.
Closed Sales in Wake County NC October 2020
Closed sales increased 15.6% from 1,842 last year to 2,129 this year. This isn’t quite as large as the increase of 27% that we saw last month, but is still a very positive sign for homeowners.
Median Sales Price of Houses in Wake County October 2020
We saw a large increase in the median sales price in October. The median home price in Wake County increased by 7.8% from $319,945 to $345,000. The interesting thing is that we saw a year over year increase of 7.9% in September 2020. Homeowners are still getting solid appreciation
Average Sales Price of Houses in Wake County October 2020
The average sales price of houses in Wake County increased by 8.6% from $363,264 to $394,654. The average price year to date increased by 6.3% from $357,807 to $380,333.
If you’re curious about the difference between average and median home prices I have a more detailed article on this blog.
Percent of Original List Price Received October 2020
The percent of original list price received, meaning there were no changes to the original list price, increased 1.9% from 97.8% to 99.7%. Year to date we see a 0.7% increase from 98.3% to 99.0%.
This number accounts for changes in listing price, a drop in price for example, and does not include any seller concessions (repair concessions, home warranties, closing costs, etc).
Percent of List Price Received October 2020
This number increased by 1.2% from 99.0% to 100.2%. I think that the 100.2% is reflective of the ‘bidding wars’ that have been happening with many listed properties.
Days on Market October 2020
Days on market decreased by 44.8%! A big drop from 29 days in October 2019 to 16 days in October 2020. Year to date dropped 11.1% from 27 to 24. Houses are selling faster and faster.
Inventory of Homes for Sale
Inventory keeps dropping. I have said many times that the lack of inventory is what’s driving the market despite high unemployment. Inventory of homes for sale dropped from 4,348 to 2,270 which is a 47.8% decrease!
Month Supply of Homes in Wake County October 2020
The current supply of inventory in Wake County as of October 2020 is 1.2 months a 52% decrease from 2.5 months last year! These are the same figures we saw last month.
Many buyers have complained of how competitive it has become to buy a house in Wake County over the past couple of years. Part of this has been due to the entrance of many institutional buyers into the local market. These institutions are usually referred to as iBuyers. According to Realtor.com, iBuying activity is likely to decrease 50% when compared with 2019.
Why? Because many iBuyers exited the marked when the coronavirus struck in early 2020. Open Door, the largest iBuyers in the nation, buying volume is down 70% when compared with October 2019.
If you’re a buyer, the decrease in institutional buyers should mean less competition. If you’re a seller, there are plenty of local businesses, such as Wake County Home Buyers, that can buy your home under better terms, so this should not impact you that much.